Warren Resources Calls for Full Redemption of Outstanding 13.02%
Sinking Fund Convertible Bonds Due December 31, 2010
NEW YORK, April 29 /PRNewswire-FirstCall/ -- Warren Resources, Inc. (NASDAQ:WRES) (the "Company") today announced that the Company has elected to
fully redeem before maturity its 13.02% Sinking Fund Convertible Bonds due
December 31, 2010, at their regular redemption price of 110% of the principal
amount thereof ($1,100.00 per $1,000.00) plus accrued interest to the
redemption date of June 29, 2005 (the "Redemption Date"). All interest on Bonds
called for redemption will cease to accrue on and after the Redemption Date of
June 29, 2005.
The redemptions are being made under terms of the Bonds, which permit the
Company to redeem them prior to maturity. Notice of redemption is being mailed
to bondholders of record on April 29, 2005.
At any time prior to the close of business on the Redemption Date, bondholders
may exercise their right to convert their Bonds into shares of the Company's
common stock at the conversion rate of 200 shares of the Company's Common Stock
per $1,000 principal amount at maturity ($5.00 per share). The Bonds may be
converted any time prior to the Redemption Date by the bondholder surrendering
the original Bond certificate to the Paying Agent/Trustee with the conversion
notice (located on the back of the certificate) duly completed and executed.
Mr. Timothy Larkin, the Chief Financial Officer of the Company, noted that "by
redeeming the Bonds, Warren will further reduce its current debt from $30.2
million to $17.4 million. Additionally, annual interest payments will decrease
from $3.9 million to $2.2 million and annual sinking fund requirements will be
reduced by approximately $0.9 million. Since December 31, 2004, Warren will
have reduced its debt by $29.1 million." As a result of the redemption, U.S. Treasury securities having a fair market
value of $5.7 million being held in escrow by the Trustee to secure repayment
of the Bonds will be released to the Company.
American Stock Transfer & Trust Company, New York, is the redemption Paying
Agent and Trustee.
Payment of the Redemption Price on the Bonds called for redemption will be paid
only upon presentation and surrender thereof by Bondholders along with a letter
of transmittal in the following manner: By Mail or in Person to: American Stock Transfer and Trust Company
59 Maiden Lane
New York, NY 10038
Attn: Reorg/Exchange Department About Warren Resources:
Warren Resources, Inc. is a growing independent energy company engaged in the
exploration and development of domestic natural gas and oil reserves. Warren is
primarily focused on the exploration and development of coalbed methane
properties located in the Rocky Mountain region and its waterflood oil recovery
program in the Wilmington Townlot Unit within the Los Angeles Basin of
California. The Company is headquartered in New York, New York, and its
exploration and development subsidiary is headquartered in Casper, Wyoming. DATASOURCE: Warren Resources, Inc.
CONTACT: David Fleming, +1-212-697-9660 for Warren Resources, Inc. Web site: http://www.warrenresourcesinc.com/
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